The effect of public childcare on the risk that mothers become NEET

Young women are much more likely to be NEET (Not in Employment, Education or Training) than young men. Little is known about the extent to which institutional and policy contexts can shape the relationship between young motherhood and NEET status – in particular with respect to the potential role of family policy. This paper explores the relationship between the risk that young mothers become NEET and the costs of Early Childhood Education and Care (ECEC). We combine data from the EU-LFS with macro-level indicators of family policies, and analyse NEET risks of 13,737 young mothers (20–29) in 22 EU-countries. We find that higher costs of childcare are associated with lower use of ECEC among young mothers, and that the use of ECEC is related to reduced subsequent NEET risks.